Question

The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm:

Purchased $23,500 of materials on account.

Issued $1,550 of supplies from the materials inventory.

Purchased $12,700 of materials on account.

Paid for the materials purchased in transaction (1) using cash.

Issued $15,100 in direct materials to the production department.

Incurred direct labor costs of $27,500, which were credited to Wages Payable.

Paid $22,700 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Applied overhead on the basis of 125 percent of $27,500 direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $11,500.

The following balances appeared in the accounts of Steve’s Cabinets for April:
  

	Beginning			Ending
Materials Inventory	$	31,890			?
Work-in-Process Inventory		8,100			?
Finished Goods Inventory		34,700		$	29,390
Cost of Goods Sold					54,930

Required:

a. Prepare journal entries to record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

TR	General Journal				Debit	Credit
1)	Raw materials inventory				23,500
	Accounts payable					23,500
2)	manufacturing overhead				1,550
	Raw materials inventory					1,550
3)	Raw materials inventory				12,700
	Accounts payable					12,700
4)	Accounts payable				23,500
	cash					23,500
5)	work in process inventory				15,100
	Raw materials inventory					15,100
6)	work in process inventory				27,500
	Wages payable					27,500
7)	Manufacturing overhead				22,700
	Cash					22,700
8)	work in process inventory				34375
	manufacturing overhead					34375
9)	manufacturing overhead				11,500
	Accumulated depreciation					11,500